An actuary is a business professional who deals with the financial impact of risk and uncertainty. Actuaries use mathematics, statistics, and financial theory to assess the risk of future events, and they help businesses and clients develop policies that minimize the cost of that risk. Actuaries’ work is essential to the insurance industry.

Actuary Job Responsibilities

  • Analyze statistical data, such as mortality, accident, sickness, disability, and retirement rates to estimate probability of events and assess financial impact of risks
  • Design or recommend plans to reduce or manage risk, such as insurance policies
  • Identify trends in actuarial data to help develop strategies for managing financial impact of future events
  • Prepare reports showing findings and recommendations
  • Communicate with clients about the results of their analysis

Objectives

  • To develop and maintain actuarial models for pricing, reserving, and forecasting purposes
  • To analyze data and identify trends in order to develop new pricing models or improve existing ones
  • To price insurance products using stochastic methods and risk theory
  • To monitor the financial impact of changes in assumptions used in actuarial models
  • To communicate results of analyses to stakeholders such as senior management, product development teams, and underwriters

Actuary Job Skills & Qualifications Needed

  • An actuary is a professional who uses mathematical techniques to calculate the financial impact of risk. Actuaries work in a variety of industries, including insurance, finance, and healthcare. In order to become an actuary, one must have strong math skills and earn a bachelor's degree in actuarial science or a related field.